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UPDATE 2-Shell in talks over Gabon sale as seeks to hit divestment target

Fri, 25th Nov 2016 13:52

(Adds Perenco response)

By Ron Bousso

LONDON, Nov 25 (Reuters) - Royal Dutch Shell is inadvanced talks with a party interested in buying its onshoreoperations in Gabon as part of a $30 billion divestment planfollowing its purchase of BG Group, which was completed inFebruary..

Shell had informed its staff of the discussions on Thursday,a spokesman for the firm told Reuters on Friday.

The oil and gas group, which plans to exit operations in 5to 10 countries, has made relatively slow progress in itsdivestments as uncertainty over oil's outlook has dampened buyerenthusiasm for deals at the prices it is targeting. So far thisyear, Shell has sold or agreed to sell around $6 billion ofassets.

Bids for the Gabon fields, which one source estimated couldbe worth around $700 million, were due in June.

Shell declined to comment on the identity of the potentialbuyer, but banking sources said that Carlyle Group, theworld's largest private equity fund, and Perenco, an independentEuropean oil and gas company, reached the second bidding roundfor the assets.

As Shell and other big oil firms look to sell assets toweather the more than two-year downturn in oil prices, privateequity and groups backed by funds have increasingly stepped intothe sector.

A spokesman for Perenco declined to comment, while Carlyledid not immediately respond to a request for comment.

Shell has been operating in Gabon for more than 50 years,and its holdings in the west African country include the RabiKounga and Gamba fields. (Additional reporting by Arathy Nair in Bengaluru; Writing byLibby George; Editing by Jason Neely and Alexander Smith)

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